An approved increase to a revolving credit limit, generally subject to lender review and program rules.
Put this term into context.
Use related guides, calculators, and magazine features to see how this concept affects real home-equity decisions.
Related Education Guides
How a HELOC Draw Period and Repayment Period Work
A HELOC is revolving credit secured by the home, so the balance can change as funds are drawn and repaid.
Read guide →HELOC vs. Home Equity Loan for a Known Expense
A known one-time expense can make the choice between revolving credit and a lump-sum second mortgage easier to frame.
Read guide →When Keeping Your First Mortgage May Matter
Many homeowners focus on the cash they can receive and overlook the economics of replacing the entire first mortgage.
Read guide →DSCR HELOC Basics for Rental-Property Owners
Investor HELOCs should be evaluated through the economics of the rental property and the lender overlay, not through owner-occupied assumptions.
Read guide →Related Magazine Features
HELOC vs. HELOAN: The Core Difference Is Revolving Credit Versus a Lump Sum
Both products can use home equity without replacing the first mortgage, but one is revolving credit and the other is usually a closed-end lump-sum…
Read feature →Using a HELOC as Business Liquidity: Flexibility, Discipline, and the Risk to Your Home
A HELOC can resemble a flexible source of working capital, but using home equity for a business creates a direct connection between business risk…
Read feature →DSCR Second Mortgages: The Investor Financing Tool Most Borrowers Don’t Know Exists
How DSCR second mortgages can provide additional investor capital while leaving an existing first lien in place.
Read feature →
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